Spatial Development Flashcards

1
Q

What drives globalization in the economy?

A
  • division of labor and specialization
  • comparative advantages (Ricardo’s theory)
  • technological advancements
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2
Q

What are the criteria for regions?

A

Homogeneous Regions: shared characteristics, problems, interests (e.g. Alpine Rhine Valley)

Functional Regions: social and economic interdependencies

Institutional Regions: Politically defined boundaries

Regions of Perception: Subjective or symbolic significance

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3
Q

What are regional disparities and why are they important?

A
  • disparities refer to inequalities or differences between regions (demographic, economic, social aspects)
  • important because they help understand functional relationships, reveal spatial change and guide political and regional planning decisions
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4
Q

What are the two types of regional disparities?

A
  • inequalities leading to injustice (negative connotation, such as income inequality)
  • inequalities as regional characteristics (value-neutral, such as cultural diversity)
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5
Q

How has disparity analysis evolved historically?

A
  • classic areas: population, income, employment
  • expanded areas: public goods and infrastructure quality
  • comprehensive assessments: include quality of life and sustainable development measures
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6
Q

What are the hard and soft factors of location:

A

Hard factors: taxes, research institutions, proximity to subcontractors, accessibility etc.

Soft factors: regional image, social climate, cultural offer, gastronomic offer, criminality etc.

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7
Q

What are the two main perspectives on regional growth differences?

A
  • Convergence: regions with lower economic development levels catch up over time, reducing disparities
  • Divergence: Disparities increase due to advantages like agglomeration effects in specific regions
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8
Q

How does the neoclassical approach explain regional growth differences?

A
  • disparities arise temporarily but diminish over time
  • capital and labor flow to less developed regions with higher returns
  • movement toward equilibrium leads to balanced growth
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9
Q

What are agglomeration economies?

A
  • benefits that arise from the spatial concentration of firms, industries, and people
  • two main types: localization economies and urbanization economies
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10
Q

What are agglomeration diseconomies?

A

negative effects of excessive concentration, such as congestion, high costs, and environmental degradation

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11
Q

What is a cluster in regional growth theory?

A
  • a spatial concentration of interconnected firms, suppliers, and institutions in a particular field
  • clusters drive innovation, competitiveness, and economic growth
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12
Q

Name the four types of clusters and explain each

A

Geographic cluster: firms located in the same area benefiting from shared infrastructure (e.g. Ruhr industrial region in Germany)

Sectoral cluster: firms in the same industry forming supply chain linkages (e.g. Detroit automotive cluster)

Functional cluster: concentration of high-value economic activities (e.g. Basel pharmaceutical hub)

Innovation cluster: networks focused on research and development (e.g. Cambridge biotech cluster)

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13
Q

What is Porter’s Diamond Model?

A

a framework for understanding the competitive advantages of regions, focusing on four determinants:

  • factor conditions: availability of specialized labor and infrastructure
  • demand conditions: local market size and sophistication
  • related and supporting industries: presence of interconnected sectors
  • firm strategy, structure and rivalry: local cometition driving innovation and efficiency
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14
Q

What explains uneven spatial growth distribution?

A

Agglomeration economies (external):

  • economies of localization: cost advantages from the localization together of firms in the same industry
  • economies of urbanization: cost advantages from urban location close to economic activity (proximity to a market, labor supply, good communications etc.)

Agglomeration economies (internal):

  • economies of scale: cost advantage of a firm due to scale of operations (cost per unit of output decreasing with increasing scale)
  • economies of scope: cost savings of firms from variety (diversified products)
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15
Q

What are the implications of spatial concentration for regional policy?

A
  • policies need to balance growth between core and peripheral areas to reduce disparities
  • investment in infrastructure and connectivity can spread economic benefits
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16
Q

How does infrastructure influence regional growth?

A
  • reduces transportation costs, improving connectivity
  • expands labor markets and business opportunities
  • encourages agglomeration effects, boosting productivity
17
Q

What are the wider economic benefits of improved regional infrastructure?

A
  • increased GDP per capita
  • higher labor productivity
  • expanded business and labor markets
18
Q

What is land rent?

A
  • income from land ownership, derived from total revenue minus labor and capital costs
  • includes location rent, based on proximity advantages
19
Q

What does the Thünen Model explain?

A
  • land rent decreases with distance from the center
  • different land uses occupy concentric zones based on rent-paying capacity
20
Q

What factors affect land rent?

A
  • transportation costs
  • demand for goods/services
  • urban expansion
21
Q

Why is controlling spatial development important?

A
  • prevents inefficient land use and urban sprawl
  • promotes sustainable densification
  • mitigates segregation
22
Q

What are the key drivers of housing market supply and demand?

A
  • supply: land availability, building costs, and infrastructure

demand: demographics, income, and lifestyle preferences

23
Q

How does land rent influence spatial structure?

A
  • high rents near the center lead to dense urban development
  • peripheral areas are characterized by lower-intensity uses
24
Q

How does the levy tax on added land value work?

A
  • taxes the increase in land value due to zoning changes
  • at least 20% of the added value is taxed under Swiss law
  • funds are used for public infrastructure and ecological projects
25
Q

What is the process for applying a levy tax during rezoning?

A
  • calculate added value (post-zoning value - pre-zoning value)
  • levy becomes due upon scale or construction
  • tax can be deducted from real estate gain taxes